"In addition, due to the high economic financialization, more than half of the profits in the real economy come from the returns of financial activities. If we exclude the factor of virtual economy, the United States actual GDP is about 5 trillion US dollars in 2009, per capita GDP about $ 15,000." ~ Dagong ratings agency (disputes $17 trillion GDP)
has never been a fiat currency in history
that did not end in hyper-inflation and
complete collapse. [Geithner's most recent
call for an] unlimited ceiling on USGovt
debt for the
"Do you remember all the talk back in 2009 and early 2010 about the Fed's Exit Plan? How the economy was recovering and the Fed would need to tighten and reduce their balance sheet? Did you laugh when you first heard the words Exit Plan as I did? Here we are nearly three years later with the Fed balance sheet more than 50% greater than it was back then. The economy is still stuck in the mud. The financial markets walking a precarious tightrope. And now not only are banks in trouble but sovereign governments as well, including the USofA. Exit Plan? EXIT PLAN??? In what world could the Fed even consider withdrawing any stimulus? I do want to add that the Fed is a little bit levered themselves. Their $3 trillion balance sheet is supported by a whopping $55 billion! They are levered over 50 to 1. Another way to look at it is that they have 2% equity carrying over 98% of the load." ~ Bill Holter (in agreement with the Jackass, who mocked both Green Shoots and Exit Strategy in 2009, but who refuses to call the USFed actions stimulus)
"If you look over the last 10 to 15 years, the clever governments have been buying gold and the idiots have been selling gold. And those that buy gold do not just buy paper. They make sure they have physically got the stuff." ~ Nigel Farage (leader of the United Kingdom Independence Party, member of the European Parliament)
how the anti-gold crowd led by Wall Street
does not spout their propaganda anymore.
No more mention of how Gold earns no yield,
now that the USTreasurys earn 0%. The capital
gains will rise for Gold even as they decline
for USTreasurys in a very captivating display,
when the USGovt debt bubble busts. It is
their last asset bubble, propped by a
See the Special Report entitled "National Disorder, Decline & Control"
for December. It features a Jackass commentary
on the nation, which has gone national socialist.
A great many residents of the
## INTRO MONETARY FRAGMENTS
◄$$$ A SOCIAL CATASTROPHE FOR THE UNITED STATES AWAITS. POVERTY AND HUNGER WILL PREVAIL. THE PROOF OF THE UNITED STATES FALLING INTO THE THIRD WORLD IS ELUSIVE. $$$
The data screams of several pathways with growing legions of members. The number
of Americans receiving Food Stamps reached
a new record in August this year, at 47.1
million people. That is two of every 13
people, according to the USDept Agriculture.
Fully 20% of households in the state of
In 2011, jobless insurance helped 26 million workers, and lifted 2.3 million people, including more than 600,000 children, above the poverty line. However, imposed limits on jobless aid are taking a toll. In 2010, about 67% of people counted in the UGovt official unemployment figures received unemployment benefits. By 2011, only 54% received jobless aid. This year the figure fell to only 45%, according to the National Employment Law Project. The federally extended unemployment benefits are due to end by December 31st. They were implemented in response to a powerful economic recession and chronic jobless condition. When the program is ended, two million people will be cut off, at which time the standard aid will cover only 26 weeks of jobless insurance. Let it be known that the Jackass was laid off from a good professional staff position in August 2003, at which time the groundwork was laid for launching the Hat Trick Letter. See the Global Research article (CLICK HERE).
◄$$$ A GREAT GLOBAL SKILLS GAP EXISTS. EXCEPT IN
A growing skills gap can be identified from a recent McKinsey survey. The mismatch is marked by high youth unemployment around the world, despite a multitude of job vacancies. Blame it on a skills shortage, which 39% of employers claim prevents them from filling entry level jobs. Alarmingly, in most of the world under half of students believe their educations prepare them adequately for careers or even finding jobs. Employers are aware that the education & training systems are not working. Students are also aware. Yet educational institutions apparently do not share in the important awareness of their own inadequacy. They serve somewhat as elite institutions beyond rebuke, demanding the respect of near nobility. The feedback loop from the work centers to the training centers is not properly functioning. While students prefer hands-on and on the job learning, regading them as more effective, even vocational schools fail typically to make such valuable experience a priority.
An elitist element persists. Despite leaders and pundits praising vocational
training, few parents choose such schools
for the children. A stigma exists. McKinsey
found that every surveyed country except
One quarter of US college graduates in my estimation specialized in gallant
festivity and inebriation with streams of
parties and hot sexual pursuit for carnal
pleasures, the orgy finished after four
years with low standards applied. No guidance
counseling is typically offered in US colleges.
In high school, some fool in the guidance
counselor office recommended French as a
foreign language to the Jackass. An award
was won in the junior year among 150 students,
to little avail.. So Spanish is learned
on my own in
◄$$$ THE FACE OF WHAT SYSTEMIC FAILURE LOOKS LIKE IS SLOWING BECOMING APPARENT. THE PICTURE SLOWLY BECOMES MORE CLEAR. $$$
The face of failure will be many sided. There will be supply line disruptions
in food and commodities from the vast
◄$$$ A SYSTEMIC BREAKDOWN IS COMING. NEITHER CENTRAL BANKS NOR LEADING GOVERNMENTS CAN PREVENT IT. NO ACTIONS TO DATE CONSTITUTE A REMEDY. NO SOLUTIONS ARE BEING ATTEMPTED, ONLY POWER PRESERVATION BY THE BIG BANKS, STILL NOT LIQUIDATED ALTHOUGH HOLLOW GIANT STRUCTURES. THE SYSTEM IS STUCK UNTIL COLLAPSE. $$$
When USFed Chairman Ben Bernanke announced in the second December week that
the official interest rate would remain
near 0% forever and a day, and that bond
purchases with toxic new money would continue
without limit, he showed the face of a failed
institution, and a failed central bank franchise
system. Witness a failed state, since the
bankers wrested control at the staged 911
quickening. Bernanke even made vague comments
to disavow blatantly wrong forecasts, since
his miserable track record reads the exact
opposite of the Jackass. He looks tired,
frustrated, out of ideas, annoyed by the
demonstrated proof of his PhD thesis falsity.
Recall this man loudly urged that the subprime
mortgage crisis was contained in 2007, when
the Jackass rebutted that the bond crisis
was absolute (sure to reach all bonds).
Perhaps he should take a long rest at
Bernanke (Magoo Jr) frustrated
Those at the Syndicate helm cannot hike interest rates, or else collapse the system. They cannot stop bond purchases, or else collapse the system. They cannot cut off big bank bond redemptions, or else collapse the system. They cannot stop filling the Fannie Mae and AIG black holes, or else collapse the system. They cannot end the Dollar Swap Facility for foreign usage, or else collapse the system. However, the system will collapse anyway, from its own sheer weight and the eroding pillars they constructed. Expect broad seizures in numerous chambers, from the bond market to the currency market to the big banks to trade settlement to oil shipments to supply chains. My best source, a brilliant man with keen insight and contacts on every continent, commented to my broad collapse unavoidability comment. He said, "To be sure, the system in its entirety will collapse and then it is over, once and for all. But the Gold market will survive in an un-manipulated fashion. Gold will serve as the backbone of the new commodity backed money with all other commodities grouped and layered around it. Investments in Gold will not just survive the collapse, they will thrive."
Carry on with the self-protection in precious metals, with a deferral of all
paper based securities destined to be flushed.
A great evaporation of paper wealth is in
progress. A bright colleague connected to
◄$$$ WARNING ALARMS ARE GOING OFF AND FEW NOTICE. THE Q.E. TO INFINITY AND Z.I.R.P. MONETARY POLICIES APPLIED FOREVER ACTUALLY ASSURE THE COLLAPSE. THE BANKERS MUST KNOW IT. THE LATEST ANNOUNCEMENT OF ANOTHER $1 TRILLION IN BOND PURCHASES PRODUCED A NASTY BACKLASH IN BERNANKE'S FACE LAST WEEK. $$$
A few highly interesting responses were felt last week, much like a big splash of icy cold water in winter. Usually after begging for more USFed action, the financial markets respond favorably to the event. Not last week. Some big events are happening as the disaster unfolds. The awareness of no solution is beginning to take root. The USFed announced $1 trillion in further QE bond purchases, but the stock market did not rally. More importantly, the USDollar and the 10-year USTreasury sold off slightly. One might be led to conclude that the awareness level is rising fast of the toxic solutions heaped upon past layers of toxic solutions. The capital flight out of USDollar and its broken vehicles has begun. Also, the bond spread differential between 10year USTreasury and 10year German Bund went from 20 bpts to 36 bpts in the following day of market activity. Little noticed was a slight steepening of the 2-year versus 10-year bond spread on the USTreasury yield curve. That usually signals US credit deterioration from higher inflation expected. Thanks to the London Siren for the collection of observations that tie together the reaction.
◄$$$ THE TRANSPORTATION SAFETY ADMIN HAS A HUGE BUDGET. ITS VALUE IS UNCLEAR. THEIR EQUIPMENT IS MEDDLESOME. THE HEIGHTENED SECURITY MEASURES SEEM INEFFECTIVE IN IDENTIFYING DOMESTIC AGENTS OF MAYHEM, FRAUD, THEFTS, AND TREASON FROM INSIDE THE USGOVT PROTECTED WALLS. NEXT COMES CHECKPOINTS AT THE MAJOR HIGHWAYS ACROSS THE VAST LAND. BENEFITS SEEM NOWHERE. $$$
More seriously, the Transportation Security Admin (TSA) is tightening its grip
on domestic travel. The future will see
a coordinated and systematic police control
of internal travel within
Wendy McElroy of the Dollar Vigilante wrote, "The application for funding
from the TSA constitutes a preliminary step
toward systematically expanding TSA's authority
from airports to highways and almost every
other means of public travel. The expansion
would erase one of the last remaining differences
McElroy is a student of travel law. She gives warning. "The Constitution
will not protect the right to travel. Although
many legal scholars consider it to be a
Constitutional right akin to freedom of
association, the word TRAVEL or its equivalent
does not appear in the document except to
guarantee the right of Congress members
to travel back and forth from work. The
Supreme Court case Saenz vs Roe (1999) rejected
the Constitutional basis of free travel
and rooted it instead within judicial precedent.
These are weak roots and shallow soil."
The obtrusive TSA agents in whatever guise
or pretext are coming to the highway, bus
stops, and train stations on your pathways.
See the Safe Haven article (CLICK HERE).
Recognition of nazi treatment will come
very soon, and jackboots noticed.
## USTREASURYS & THE ABYSS
◄$$$ THE USGOVT DEBT WILL SURPASS THE US-GDP VERY SOON. THE USECONOMY IS ON A FLAT LINE, SOON TO CLEARLY TURN DOWN EVEN AFTER UPWARD OFFICIAL BIAS. THE EVENT WILL PASS A MAJOR SIGNPOST AND USHER THE WAY TO THE THIRD WORLD, INCLUDING AWARENESS. $$$
The trajectory is frightening. The Gross Domestic Product for the
A comment to pass on, a story that comes from a source with connections in the
The Federal Reserve contract, its lease on money, expires on December 31, 2012. Amazing, not one word is being spoken about it in the national press networks, among Congress members, not even the leader in the White House. The contract ends 99 years after its inception in 1913. That vote long ago took place during a sparsely attended Christmas holiday session. The uproar over the vote, a ramrod to be sure, prompted passage of a rule requirement, that a quorum had to be present in order to conduct any legislation approval. In less then half a month, it expires, along with the current year. Some big changes could be coming, difficult to know. Most likely, another 99 years has already been secretly passed. Midnight vote conducted in a Congressional hall closet !!
◄$$$ THE USGOVT DEFICITS ARE ACCELERATING, EVIDENCE IS THE 24% RISE IN THE FIRST TWO MONTHS OF THE FISCAL YEAR VERSUS LAST YEAR. A FRESH $292 BILLION DEFICIT HAS BEEN RACKED UP IN JUST TWO MONTHS OF FISCAL 2013. OBSERVE THE GALLOPPING STEALTH RECESSION. $$$
The USGovt deficits are growing worse, in the wrong direction. The tax receipts are in decline, with few noticing. The social network costs continue. The war costs continue. The first two months posted deficits 24% greater than last year. The recession in the USEconomy is degrading rapidly with almost zero recognition outside the Hat Trick Letter. The USFed will never be in a position to stop the monetizing of the debt, since the main legacy foreign borrowers are pulling back. The promise to continue the central bank bond purchases with free money until the jobless rate falls is an admission to perpetuate the bond monetization forever, since the official monetary policy is killing capital, shrinking profits, and cutting jobs. The USFed will be using an infinite free monetization rein. See the Zero Hedge article (CLICK HERE). Notice the higher bars in the chart for the new fiscal year versus last year.
◄$$$ FISCAL CLIFF NEGOTIATIONS ARE A CONTINUED THEATER OF THE ABSURD AND CLUMSY, ALONG WITH INCOMPETENT AND COMPROMISED. THE JACKASS VIEW HOLDS THAT THE BROAD SPENDING CUTS, CALLED THE FISCAL CLIFF, WAS DESIGNED TO GO OVER. IT WAS DESIGNED TO FORCE THE BROAD SPENDING CUTS WITHOUT ASSIGNMENT OF BLAME. BROAD TAX REFORM, ENTITLEMENT REFORM, AND END TO WAR COSTS WILL NOT COME ANYTIME SOON. EXPECT TOUGH DECISIONS ONLY WHEN THE USGOVT FACES MORE DEBT DOWNGRADES AND GLOBAL ISOLATION ON USTBONDS. THE USGOVT DEBT & OBLIGATIONS IS MUCH LARGER THAN REPORTED. $$$
It will still be interesting to watch. The marxists and fascists are on opposite
sides of the USGovt budget table. The polarization
is akin to Hitler and Stalin over the European
threater. The preservation of entitlements
for the poor, disabled, jobless, dispossessed,
retired, and otherwise idle portion of the
A note on the Obama Admin and its approach to the so-called fiscal cliff. The
President has appointed Treasury Secy Geithner
as the chief negotiator on the fiscal negotiations,
which seems strange on several fronts. He
has no experience dealing with Congress.
He is a lame duck with no real power left
with Congress, since he has already announced
he will be leaving in January. He is a complete
stooge and likely is viewed in contempt
by many members of the USCongress. He is
viewed as a finance minister lacking any
semblance of visions during the four years
of storms, a GSax tool to process demands
and guard the door. The only person in the
Cabinet that has deep connections to the
Hill is Vice President Biden. Sadly, Biden
has chosen to operate as a foreign policy
wonk (stooge) instead of bringing to bear
his Senate experience. He prefers to sit
at Council on Foreign Relations functions,
with free lunch served. Some believe
Obama chose Geithner to sabotage the negotiations,
to ensure their failure, and to attempt
to put the blame on the House. Any substantive
progress will be done next year with the
new Congress. If the blame cannot be
put on Boehner in the House, then Geithner
will be blamed. The President is not about
compromise, make progress, or pursue development
in any way shape or form. He plays politics
with the budget, with the labor unions,
with the media, with the embassy attacks,
with the war, with the charisma, and with
the teleprompter during debates (in his
ear). He is the epitome of demagogue. Bush
II was an miscreant and a moral leper who
ransacked the nation and brought fascism.
Obama is a manchurian candidate and demagogue
who is determined to ransack the nation
further and establish marxism. The
◄$$$ EDITORIAL COMMENTARY STREAMS IN, NONE COMPLIMENTARY. $$$
Satyajit Das is a veteran expert on derivatives and risk management with a long
stellar track record. He refers instead
to the several debt mountains fixed on
the American landscape, noting that
going over the fiscal cliff will solve none
of the debt problems. The obstacles fixed
within Social Security, Medicare, and Medicare
seem as insurmountable as the state and
municipal debt obligations. He foresees
the automatic tax increases, non-renewal
of tax cuts, and spending cuts as equivalent
to a hit of about 5% to GDP. That is
a hefty added downward push to the existing
stuck recession. The automatic spending
cuts are a mere first installment to bringing
US public finances under control. The solution
process requires bringing budget deficits
down, through spending cuts, tax increases,
or a combination. The fiscal cliff is merely
a step down that long road. The true
solution is debt default with restructure,
as the numerous austerity programs in
Expect the politicians to do the least required, to stall the longest possible,
to make the fewest concessions, and to agree
to the smallest deals, then to extend the
debt limit. They are not leaders. They are
cheap harlots in the pocket of the bankers
and big business, if not the foreign policy
think tanks that control too much of the
nation. The public purse is wrecked by too
many hands and not enough heads, precisely
as the communist ideologues wrote. Expect
progress only when a crisis over the debt
limit spreads to rating agency downgrade
of official USGovt debt and perhaps more
recognition of the USFed having turned
Furthermore, there is no possibility of inflating the monster debt away. The
same is true for
"As a result, fiscal policy discussions generally focus on current-year budget deficits, the accumulated national debt, and the relationships between these two items and gross domestic product. We most often hear about the alarming $15.96 trillion national debt (more than 100% of GDP), and the 2012 budget deficit of $1.1 trillion (6.97% of GDP). As dangerous as those numbers are, they do not begin to tell the story of the federal government's true liabilities. The actual liabilities of the federal government including Social Security, Medicare, and federal employees future retirement benefits, already exceed $86.8 trillion, or 550% of GDP. For the year ending December 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion. Nothing like that figure is used in calculating the deficit. In reality, the reported budget deficit is less than one-fifth of the more accurate figure.
Why haven't Americans heard about the titanic $86.8 trillion liability from these programs? One reason: The actual figures do not appear in black and white on any balance sheet. But it is possible to discover them. Included in the annual Medicare Trustee report are separate actuarial estimates of the unfunded liability for Medicare Part A (the hospital portion), Part B (medical insurance), and Part D (prescription drug coverage). As of the most recent Trustee report in April, the net present value of the unfunded liability of Medicare was $42.8 trillion. The comparable balance sheet liability for Social Security is $20.5 trillion." See the Wall Street Journal article (CLICK HERE).
◄$$$ THE ADJUSTED MONETARY BASE MIGHT HAVE A BIG DELAYED REACTION IN A SUDDEN UPWARD MOVE. THE USFED IS REPORTEDLY BUYING MORTGAGE BONDS ON A WHEN-ISSUED BASIS. THE DATA IS DECEPTIVE. A SUDDEN JUMP IN THE MONETARY BASE COULD LIFT THE GOLD PRICE IN A BIG WAY, SINCE THEY ARE TIGHTLY CORRELATED. $$$
Some astute observations have been made on the St Louis Fed, which tracks the monetary base. This important monetary aggregate has not grown at all in the course of the past year and a half, not since July 2011. Recall that QE2 and Operation Twist have occurred during this timespan. Despite the great wailing and gnashing of teeth on the part of the hard money advocates and the gold bugs about the Fed's balance sheet exploding, it has not been expanding by leaps and bounds. A source close to the USFed, possibly involved as a primary bond dealer informs that the USFed has been buying mortgage backed securities on what is essentially a When-Issued basis. Those securities have not yet shown up on the USFed balance sheet. A flood will begin to arrive on their balance sheet in mid-December. If correct, then by late December or early January the adjusted base should explode to the upside with much fanfare and harried defense. Typically the Gold price responds with a correlative movement to the monetary base, as history will show. In fact, Gold is not priced higher, but rather the USDollar is price lower in fixed stable Gold terms. The critical data should be released soon.
◄$$$ WARREN BUFFET HAS TURNED INTO A BLATANT HARLOT WITHOUT EITHER BEAUTY OR MAKEUP. HIS CITATION OF JAMIE DIMON FOR THE TREASURY SECRETARY POST REEKS OF PANDERING. DIMON IS A SYNDICATE DON, OF STATURE LIKE PAULSEN. SUCH AN APPOINTMENT OF DIMON WOULD IMPLICITLY SIGNAL THE MANAGED DEATH OF THE HOUSE OF MORGAN. $$$
To consider JPMorgan CEO Jamie Dimon as a candidate for the important Treasury Secretary post, one must put aside both the wrecked JPMorgan colossus and the legal prosecutions the giant bank faces. Warren Buffet lost my respect when he lied openly about his silver position years ago. He paid a club membership fee three years ago with an outsized investment in Goldman Sachs. Lately, he has made stupid comments about the wealthy paying higher taxes, as though that would solve even 1% of 1% of the deficit problem. He has come forward suggesting Dimon would make an ideal Treasury Secretary. Such an appointment would be very difficult to approve in the Senate, given the embarrassment this summer over Whale losses, exposure of Interest Rate Swap activity, alongside an endless stream of litigation over mortgage bond investment fraud and mortgage contract fraud.
If Dimon takes the finance post, it would mean that the USGovt admits the JPMorgan giant bank is dying, and must be managed for the complete final impact. It would mean the USTreasury Bond tower is set to collapse, with knowledge behind the curtains where derivative are holding the teetering tower. Dimon in his primary post could bend favor to the corrupt croaking colossus. Since the summer when the massive understated losses hit the giant bank, the Jackass has been convinced that the House of Morgan will die in the not too distant future. My best source reported in June that powerful Eastern entities have sabotaged the JPMorgan derivative structure that supports the USTreasury Bond, the damage done in an irreversible manner. What remains is the unstoppable progression in collapse. See the News Max article (CLICK HERE).
◄$$$ USAGE OF THE NEGATIVE INTEREST RATE (BARRICADE) IS BEING USED TO
CONTROL MOVEMENT OF FUNDS WHERE NOT DESIRED.
NEGATIVE SHORT-TERM RATES IN
Sooner or later, companies and very wealthy individuals will turn away from
sovereign bonds that offer next to nothing.
Well, the Swiss offer less than nothing.
Their central bank announced in early December
that it will charge for firms to hold a
Swiss Franc cash balance. Swiss banks are
furiously doing everything in their power
to halt the dumping of EUR in exchange for
CHF. The investors will find Gold, which
despite no yield payout offers capital gains.
In fact, later on the Swiss Franc will offer
a sudden upward revaluation that will produce
capital gains also. The sovereign bonds
offer likely huge principal losses by comparison.
Credit Suisse has moved to a negative yield
policy. They do not want foreign funds any
longer. The Swiss Franc is at risk of exploding
much higher, sure to ravage their economy.
Investors should refuse to pay 0.75% to
store idle or extra or saved funds with
the Swiss banks. They clearly are trying
to force money out of the Swiss Franc and
into the Euro currency, where the
Desperation grows. After four years of bad patches, reckless monetary actions, obscene bond redemption, nasty austerity programs imposed, and awkward dances over extended loan repayment, overall conditions are starting to look worse than before the 2008 bubble. Tyler Durden summarized, "The need to do this suggests an overwhelming desire for short-term safety that flies in the face of the seeming level of complacency that exists in the European bond (and stock markets). As we have warned before, it seems that the Currency Wars that appear to have escalated have now started the Capital Control wars as Credit Suisse (and implicitly the Swiss National Bank) adds this negative interest rate charge [cost deterrent] to its already pegged currency in the vain hope of managing the unmanageable flow of safe-haven-seeking cash." See the Zero Hedge article (CLICK HERE). At risk next is the perceptions of central bank franchise system integrity, recognition of bank system insolvency, and the charade of paper currency toxic spew seen as dangerous. The Competing Currency War is going to the next higher level.
◄$$$ THE EUROPEAN RESCUE FUND WAS DOWNGRADED BY MOODYS. THE ULTIMATE INSULT WENT LARGELY UNNOTICED BY THE MEDIA. THE VEHICLE IS BROKEN, THE DRIVERS INSOLVENT, THE SOLUTION NULL & VOID, THE EMBARRASSMENT TOTAL. THE LIQUIDATION SOLUTION IS AVOIDED AT ALL COSTS, WITH LAYER UPON LAYER OF EURO-CB PAPER MACHE APPLIED. THE FRENCH GOVT BOND WAS DOWNGRADED, ITS CHERISHED AAA RATING GONE. $$$
Despite the embarrassment, Mario Draghi could be voted Man of the Year, or better
the Lord of the (Flypaper) Flies. The Jackass
has called the EFSF fund the Draghi Still-born
baby, rightly so. It failed within 40-45
days out of the gate. The Draghi Euro Central
Bank offered higher subordinated bonds to
big European banks, who gobbled them up
only to purchase overvalued sovereign bonds.
The French, Spanish, and Italian Govt Bonds
had artificially been raised in value by
the EuroCB itself from pump projects. The
EFSF fund's failure should have forced Draghi's
resignation, but the royal bankers value
dedication over integrity. In late November,
the credit rating agency Moodys Investors
Service cut its rating for the EuroZone
rescue funds ESM and EFSF to Aa1 from Aaa.
A clownish empty rebuttal came from the
The EFSF downgrade decision came in the wake of the French Govt debt downgrade
earlier in the month. Moodys stated the
fund downgrade was prompted by the high
correlation in credit risk among the rescue
funds and their largest financial supporters.
Moodys had completed the stripping of
Friend and colleague Aaron Krowne of the Implode Explode website pitched in.
He said, "The sham is falling apart
as bloggers pointed out years ago when these
mechanisms were being discussed and proposed.
The poor solvency of the member states (guarantors)
would defeat the purpose of having a creditworthy
vehicle, based on anything besides spreading
the cost to the
◄$$$ THE B.I.S. HAS ISSUED A WARNING OF ANOTHER BUST IN THE FINANCIAL WORLD. THEY IDENTIFY AN OFFICIAL BOND BUBBLE, AND IMPLY A RESOLUTION COMES. THEY CLAIM HIGHER RISK SHOULD NOT GO HAND IN HAND WITH ULTRA-LOW BOND YIELDS. IF IT OCCURS, THEY HAD A ROLE IN IT WITH NEW RULES IMPOSED TO DE-LEVERAGE IN A SLOP OF RANKED TIERS FOR ASSETS. $$$
In a rather surprising admission through a research paper, the Bank For Intl
Settlements has issued a warning of another
2008-style credit crisis event. The reference
is to a systemic crash of the Lehman type.
The BIS bank actually correctly forewarned
of the 2008 credit bubble that did burst,
perhaps not exactly as they expected since
the warning was in vague terms. Again the
warning is in vague terms, but still a valid
warning. They implicitly admit that the
solutions in the
The BIS has warned that another bubble has formed in the bond market, the largest liquidity pool on the planet. Since the sovereign bonds serve as foundation for the monetary system, this is indeed a much more dire warning that the mortgage bond threat in 2008. Bonds are valued at their lowest yields and highest principal in 30 years. They are correct in pointing out risk, but they should identify the USTreasury Bond as the biggest bubble in modern history. They do not. The BIS claims the global financial market has reached a tipping point. Note the anomaly that the big global banks are de-leveraging and cutting back on loans at a time when the bond markets continue to offer capital for almost nothing in return for the risk. Consider the warning a coronary attack signal that goes unheeded.
Blame belongs on the global central banks for artificially low interest rate regimes. The BIS report stated, "Some asset prices appeared highly valued in a historical context relative to indicators of their riskiness. Unusually, equity and fixed income gains coincided with a weakening of the global economic outlook. In the past, falling growth forecasts have usually been associated with rising expected default rates and higher bond yields." The non-government bonds tag along and display absurdly low bond yields, which in no way reflect the risk. The mortgage bond explosion from 2008 to 2010 demonstrated the unjustified low yields (high prices), resulting in catastrophic losses for bond investors seeking higher yield. By insisting on low government bond yields (stuck actually), the investment community is forced to chase the other bonds that do not deserve low yields. Savers are being abused. Risk is not properly priced.
The global government bond bubble is perverse and diverse. All nations are mired
in recession, from the
Major trauma comes in global financial markets once again, as resolution of grotesque imbalances must come. Huge losses for bond holders lie directly ahead, followed by debt restructure. The ugly conflicting harsh events come later on. Shifting out of bonds and into hard assets like precious metals is the best logical course for investors. See the Arabian Money article (CLICK HERE).
The warlocks in the BIS castle are financial warlords sitting in high perches, directing central bank traffic. These are past repositories of stolen central bank gold from wartorn lands. These are supra-nationals with no allegiance to a country, only to money and power. They are accountable to nobody and loyal perhaps only to Beelzebub. The BIS lieutenants routinely jack the gold market with ambushes. The BIS lieutenants subvert the process. Their history could not be more scummy, including nazi thefts in the 1940 decade, hidden in the BIS, justified as providing safe haven. The secretive bank has prefered since 1900 to conduct business without public notifications, without conference billings, without disclosure of truly nefarious deeds.
◄$$$ THE USGOVT PURSUES REPORTING FOREIGNER PENSION FUNDS, THE AGENDA
YET UNKNOWN. THE PRESSURE WILL RESULT IN
A WHIPLASH WHERE FOREIGN FUNDS WILL DIVEST
AND DIVERSIFY OUT OF THE
A conversation took place two weeks ago with a good friend in
◄$$$ MARK CARNEY FROM
Just another Goldman Sachs hack, so is Mark Carney. One can only speculate as
to what the British are doing. They must
either be losing control or be forced to
invite an outsider. At the same time, Carney
will be in position to keep an eye on the
## CENTRAL BANKS & GOLD
◄$$$ JAMES TURK DISCUSSES THE SLIPPERY ACCOUNTING METHODS USED BY CENTRAL BANKS THAT CONCEALS THE LEASE OF GOLD FROM OFFICIAL ACCOUNTS. GOLD BARS AND GOLD RECEIVABLES ARE GIVEN EQUAL STANDING IN CORRUPT ACCOUNTING METHODS. $$$
James Turk is Chairman of GoldMoney and co-author of "The Collapse of the Dollar" (published 2004). He is an expert in gold accounting, who has applied his craft to dissection of the GLD and SLV corrupt funds also. He has built a solid gold fund in GoldMoney based upon group collective allocated accounts, with vault services around the world. He claims that central banks are holding less in their physical gold reserves than many assume. They use simple accounting fraud methods. The central banks report gold and gold receivables as one line item on their balance sheets, making no distinction. That is like a company claiming Cash and Accounts Receivables are the same, a practice never done, never permitted. Hence the central banks are permitted to lease out physical gold in return for paper claims in the form of Gold Certificates, never to declare the leases on their books. The debated question is how much physical gold is left. Turk claims NOT MUCH AT ALL. See the GoldMoney interview (CLICK HERE).
The call has turned loud to bring Austrian gold back home from
◄$$$ IN 1999, ONLY 15% OF OFFICIAL GOLD AT CENTRAL BANKS HAD BEEN LEASED, ACCORDING TO AN INTL MONETARY FUND STUDY. IN THE FOLLOWING 12 YEARS, LOGIC DICTATES FAR MORE OF THE GOLD RESERVES HAVE BEEN LEASED OUT. DURING THAT TIME, THE GOLD BULL MARKET WAS BORN AND FLOURISHED. THE GOLD PRICE ROSE OVER 5-FOLD. DEFENSE OF THE FIAT PAPER USDOLLAR-BASED SYSTEM HAS BEEN FIERCE. VERY LITTLE CENTRAL BANK GOLD REMAINS, MUCH LEASED WITHOUT ACCOUNT HOLDER KNOWLEDGE. THE TRUE GOLD PRICE SHOULD BE TWO TO THREE TIMES HIGHER. $$$
Many major sovereign bonds have found trouble since year 2000. The big
A study conducted by the Intl Monetary Fund in 1999 concluded
that 80 central banks had leased 15% of
official gold reserves.
Factor in a decade of crisis and a deeply
criminal Bush Admin, followed by a more
desperate Obama Admin, both of whose Dept
Treasury were run by the criminal syndicate
lead dog Goldman Sachs, and it is a snap
conclusion that a majority of the gold from
central bank accounts is gone. GATA obtained
(via researcher RM) the IMF report. A large
amount of gold bullion held by central banks
was leased and sold into the market. The
participants were the German Bundesbank,
the Swiss National Bank, the Bank of England,
the Reserve Bank of
As usual, the devil loves the darkness. Lack of transparency usually provides a breeding ground for criminal fraud. The study concluded, "Information on the gold market is patchy. Transactions are characterized by a high degree of secrecy. Apart from the relatively small amount of open trading on exchanges, gold trades are private, over-the-counter transactions, and little is reported on these transactions. Official information on gold lending is virtually non-existent." Ironically, the IMF study drew data from mostly private sources, they claimed.
To be sure, the IMF study was not written for public viewing purposes. It made an accurate conclusion that has been vigorously denied by the hack bankers and tool finance ministers for almost two decades. Even former USFed Chairman Greenspan had admitted that controlling the gold price was the primary objective of gold lending. The study concluded, "The increased mobilization of central bank reserves through gold lending operations has had a depressing influence on the spot price for gold since on-lent gold is usually associated with sales of gold in the spot market." The study went further into the actual mechanics of the leasing, interwoven with the gold producer forward sales. The practice of mining firm forward sales offered cloud cover for the central banks, who would merely claim they acted as efficient intermediaries in a sophisticated system. The study described as gold lending had caused central banks to become active in the gold derivatives market with bullion banks and gold producers, selling through forward contracts and sophisticated options. In turn, the bullion banks secured and consolidated long-term relationships with central banks.
While 80 central banks were identified as taking part in the gold lease market,
the breakdown is important. The share
of industrial nations in the stock of total
official gold lending rose from 33% at year
end 1995 to 46% by year end 1998. The
rise was attributed to the Bundesbank and
the Swiss National Bank, which both aggressively
entered the market. Thirteen years later
it seems likely that the proportion of central
bank gold reserves that has been leased
into the gold market is substantially higher.
The same Western central banks have been
forced to defend a broken and insolvent
banking and bond system. They continue to
demand secrecy for their gold lending even
amid growing concerns about the security
of their gold reserves vaulted abroad. They
are hiding criminal activity with urgency,
even as recent demands for repatriation
are registered. See
◄$$$ THE BANK FOR INTL SETTLEMENTS HAS LET ITS GUARD DOWN ON DATA CONCERNING GOLD SWAPS AND SIGHT ACCOUNTS. A REDUCTION BY 60% IN GOLD SIGHT ACCOUNTS IS CONSISTENT WITH A VERY TIGHT GOLD MARKET THAT HAS REQUIRED OFFICIAL CENTRAL BANK GOLD TO BE SOLD. THEY HAVE BEEN BORROWING FROM THE B.I.S. SINCE 2009 IN HEAVY VOLUME. THE PRACTICE COVERS THEIR TRACKS IN ALLOCATED ACCOUNT RAIDS. $$$
The Bank For Intl Settlements has provided a report on gold swaps, a practice begun in 2009 that flourishes. Their detailed reports on gold hints at repatriation by central banks, which scramble to replaced leased gold bullion. Great changes have taken place to the gold banking business carried out by the BIS since March 2009 and its usage of gold derivatives. They are almost all gold swaps. They have grown from zero as of March 31, 2009. See the official BIS document in the 2012 interim report (CLICK HERE).
Since March 2009 there has been a significant change in the source of the gold deposited by the BIS with central banks in what are called gold sight accounts. The volume has fallen from 1197.45 tonnes as of March 31, 2009, to 509.43 tonnes as of September 30, 2012. By March 2010 the BIS had sourced 346 tonnes of gold in the form of gold swaps. One should note that the financial icon had never done such swaps for many years previously or at least not disclosed. By July 2010, BIS head Jaime Caruana admitted to the Financial Times that the swaps were regular commercial activities for the bank. In the event that the BIS could not have returned to it all the gold it has deposited in sight accounts as of September 2012, then it would run the risk of having to obtain up to 393 tonnes of gold on the open market to return to the gold swap counter-parties. This risk is not specifically considered in their own commentary on the risks it faces.
The nearly 60% reduction in the amount of gold deposited with the BIS in sight accounts is consistent with a desire by owners to exert greater control over their gold. Conclude with suspicion that gold swaps have indeed been abused by the BIS to supply gold to avoid a default by exposed central banks, precisely when requested formally to return the unallocated gold held in a sight account deposited with the BIS. The data supports the claim of a tight physical market for gold where certain central banks are taking action to get a firmer grip on their metal. The distrust grows.
◄$$$ GIVE DISRESPECT TO THE TEN YEAR ANNIVERSARY OF BERNANKE'S STUPID
SPEECH. HE WILL EAT HIS WORDS, SINCE THE
The following dimwitted obtuse and ludicrous treatise was scribed by the inept
professor serving as US Federal Reserve
Chairman. He know less about economics than
he does about money. And Ben Bernanke
knows nothing about solutions to repair
the current financial crisis, saddled by
deep insolvency. His monetary policies
with Zero Percent Interest Rate and Quantitative
Easing are killing the USEconomy by lifting
the cost structure, squeezing the profitability
for businesses, and thus killing capital.
His views on Gold are moronic to the core
of the human intellect. His views on money
creation are equally moronic to the core
of the human intellect. In November 2012,
Ben Shalom Bernanke wrote the following
stupidity, which will be remembered when
the USEconomy enters systemic failure and
the USGovt debt enters default negotiations.
He gave the speech to fellow economists,
of equally bad training, at the National
Economists Club in
"The conclusion that deflation is always reversible under a fiat money system follows from basic economic reasoning. A little parable may prove useful: Today an ounce of gold sells for $300, more or less. Now suppose that a modern alchemist solves his subject's oldest problem by finding a way to produce unlimited amounts of new gold at essentially no cost. Moreover, his invention is widely publicized and scientifically verified, and he announces his intention to begin massive production of gold within days. What would happen to the price of gold? Presumably, the potentially unlimited supply of cheap gold would cause the market price of gold to plummet. Indeed, if the market for gold is to any degree efficient, the price of gold would collapse immediately after the announcement of the invention, before the alchemist had produced and marketed a single ounce of yellow metal.
What has this got to do with monetary policy? Like gold, US dollars have value only to the extent that they are strictly limited in supply. But the US government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many US dollars as it wishes at essentially no cost. By increasing the number of US dollars in circulation, or even by credibly threatening to do so, the US government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation."
That such mindless drivel would come from a PhD Economist is shocking. First, Gold can never be produced at zero cost. Thus a Straw Man's argument was given for confusion. The USGovt cannot produce USDollars at zero cost. Consider the impact of large volumes of newly produced USDollars. The impact is the rise in the entire cost structure for the global economy, hardly a minimal consequence (zero cost). Such impact was clearly seen in 2011 when QE1 was implemented. With greater coordination among major central banks, the cost structure is on a slower rise, more evenly applied, with less focus on the USFed. The gross insolvency makes reluctant business expansion, as few companies take advantage of ultra-low rates. The household quagmire continues without end. The USFed with its mindless spew of newly created money has no idea of the consequence, higher costs, lower profits, and reduced income from relentless job cuts. Their promise to continue ZIRP & QE until a positive economic response comes is a death sentence to the system. Imagine administering more whisky to the alcoholic until he can stand, walk, talk, and work. It is mindless to the extreme.
The cost to unlimited money printing is systemic ruin from gradual rising costs,
drowning the citizens of the nation with
liquidity, but not addressing insolvency.
The combination of ZIRP & QE will plow
the nation under. Most American economists,
is the Jackass opinion that Bernanke's PhD
in Economics should be revoked. In the past
four years, he has adequately disproved
his doctoral thesis in clear terms.
He revised history of the Great Depression,
claiming ample liquidity would have shortened
that crisis. But the
## TUNGSTEN SCANDAL GONE VIRAL
◄$$$ THE CANADIAN MINT WAS A VICTIM OF TUNGSTEN SALTED GOLD BARS. THEY COVERED IT UP BY CALLING IT MISSING INVENTORY OR A FLOOR SCRAP ROUNDING ERROR. THE TRUTH IS COMING OUT. $$$
Fellow colleague and friend Rob Kirby has been an intrepid analyst and reporter
on the scene to a concealed victimization.
The Royal Canadian Mint in all likelihood
suffered a $15 million loss in gold bullion
from discovery of salted tungsten bars.
They covered up the loss, for fear of negative
publicity of massive fraud from the bullion
bankers, whose trails would surely lead
to the USDept Treasury. The Ground Zero
for tungsten salted gold bars will be identified
Back in 2009, the Royal Canadian Mint (RCM) claimed that it had lost $15 million worth of gold bullion. The blamed the loss on floor droppings during the melting process, an insult to anyone's intelligence and the source of Jackass laughter when the story first broke, during Kirby phone calls. What followed can best be described as a fumbling exercise where several flimsy accounts were put forward to the public in explanation. The RCM is one of the world's most renowned mints, no longer. An official investigation by the Royal Canadian Mounted Police led to a thin veneer of credibility being shattered, where the public was told of lax controls, accounting blunders, and more. The controls were indeed lax, as numerous gold bars contained over 95% tungsten, same weight and same density as gold. Lax Internal Controls at the ISO 9001 accredited Royal Canadian Mint do not wash easily. A better rendition explains the events much more credibly.
Rob Kirby concluded the following, to explain why the Royal Canadian Mint circulated
a false baseless story about $15 million
worth of gold bullion lost. "In
the face of unprecedented demand for Gold
Maple coins and with physical supplies of
gold being tight in 2009, it makes sense
that the RCM would have borrowed gold bullion
from one of their customers whom they store
bullion for. I have been told by industry
insiders that the RCM does not assay
gold bars when they take them in for storage.
When the RCM tried to melt these bars, they
were revealed to be tungsten, which melts
at a much higher temperature than gold.
This created a very awkward situation for
the RCM, having to tell one of their customers
that they had stored salted tungsten bricks
of gold." See the Silver Doctors
article (CLICK HERE).
My guess is the fake gold bars came from
◄$$$ THE TUNGSTEN SALTED GOLD BAR SCANDAL HAS GONE VIRAL. IT TARGETED
THE CHINESE AND
The many sided banker scandals are erupting with force and conviction. This is not only smoke but identifiable blazes and captured silhouettes of bankers lighting the fuses. The trails are becoming clear, the full account of data not yet revealed. It might never be revealed. Justice might never be served. As mentioned a few times in past Hat Trick Letter reports, the new sheriff exerting authority and power might prefer to continue to flip the guilty parties to force the highest echelons of corrupt bankers to forfeit control. A race is on to establish justice, to put in place a legitimate stable trade and banking system, to remove key criminal bankers from their posts, BEFORE the world is transformed into a lawless Mad Max landscape with acute shortages, widespread deaths from planted plagues, and produced natural disasters like recently steered on the Northeast United States. The banker scandals are expanding on every front. A survey is useful.
The Gold Fraud has mushroomed in the last few months, as it pertains to tungsten
salted bars posing as good delivery gold
bars. European and Asian sources allege
the tungsten switch has gone sovereign.
At the center are Deutsche Bank,
The salted tungsten gold bar episode has motivated
Since 2009, scattered reports have come, not just from the Jackass, about major
gold investors having trouble forcing Swiss
storage facilities to deliver on their gold
accounts. The revelation of class action
lawsuits against the Swiss bankers will
occur soon enough. Some very important events
have taken place in the last two months,
A quick detail on tungsten. Bars can be made very cheaply. It fools people,
even professionals, if gold plated, since
tungsten has very nearly the same density
as refined gold. Gold sells at around $1700
per ounce, but plentiful Tungsten sells
at $10 per pound. The difference is on the
order of 2000:1 favoring gold, motive for
the switch. With a bit of careful disguise,
the placement of tungsten inside a gold
bar can fool an X-ray machine under certain
circumstances. Numerous instances have been
reported of fake gold bars appearing in
Some leading journals like Forbes have offered rubbish articles to undermine
the tungsten story, others calling it isolated.
It is not isolated, but rather widespread
and systematic. Late last September, however,
Zero Hedge ran a Tyler Durden article confirming
that several smaller retail gold bars sold
Deutsche Bank is part of a larger network of corrupt syndicate banks involved
in dastardly profound widespread fraud.
These are not crude attempts to deceive
a retail greenhorn, but rather an well-planned
and sophisticated salting of gold bars distributed
by a major bank in satisfying international
bank obligations that alter the global stability
of the entire system. The activity is
designed to fool even an expert engaged
in approving the purchase for a large sovereign
client. The prima facie case for organized
crime is clear with mortgage bond fraud,
mortgage contract fraud, USTreasury Bond
counterfeit, LIBOR price fixing, Gold market
price fixing with grand naked shorting,
and much more. The big banks are not so
much desperate as they are giving license
to steal and defraud as part of the deeply
rooted fascist system put firmly in place
◄$$$ EVIDENCE MOUNTS THAT DEUTSCHE BANK PROVIDED TUNGSTEN BARS TO NATIONS
IN REPATRIATION LIKE HONG KONG IN ORDER
TO FULFILL THE REDEMPTION. THEY DELIVERED
FAKE GOLD BARS, AS PART OF A SYNDICATE PROGRAM
An Austrian banking source remains anonymous, but has offered explosive information
in the continuing story of salted fake gold
bars. The intrepid Slog was the source on
the story. He claimed that Deutsche Bank
fulfilled (his word) a gold repatriation
in recent years with the help of tungsten
bars. He further informs that the tungsten
salted gold bars have turned up in
In 2009, Rob Kirby first uncovered detailed information regarding a massive
plot to replace 400-oz good delivery gold
bars with highly sophisticated tungsten
filled fakes. He went further to provide
evidence that the bars had been swapped
with the gold bars held at
Caution is warranted, however. The alert observer must be careful not to jump
too far in conclusion. The gold market is
indeed tight, but the actual
To be sure, the jig is nearly up for the bullion bank cartel. Exposure is happening slowly but surely. See the Silver Doctor article (CLICK HERE). Hey, what does anyone really know? Just a Jackass here thinking outside the box about truly sinister plots and treasonous acts. No proof here, just connecting dots with an open fertile mind ripe with suspicions. The recent events support such viewpoints and suspicions.
## CRUDE OIL & PETRO-DOLLAR DEMISE
◄$$$ SAUDI KING ABDULLAH IS BELIEVED TO BE CLINICALLY DEAD FOLLOWING SURGERY. THE HOUSE OF SAUD IS SLOWLY UNRAVELING, SOON TO FALL. THE PETRO-DOLLAR IS NEXT. WATCH FOR THE SAUDI SUCCESSOR TO BE CHALLENGED IMMEDIATELY INSIDE AND OUTSIDE THE NATIONAL BORDER. THE UNSTABLE SITUATION WILL WORSEN, AND TAKE OUT THE PETRO-DOLLAR. THE DEFACTO STANDARD IS IN SUNSET. $$$
The silence can be regarded as tacit confirmation. Saudi King Abdullah is rumored
to be clinically dead. Like wildfire,
reports are spreading that the King of
Experts anticipate the death of King Abdullah could potentially rock the Kingdom. According to the Saudi Gazette, the powerful monarch has been named as the most influential personality in the entire Muslim world, topping a list of 500. He is popular, perhaps more popular than his older brother Faud, who curried more favor to the British and Americans. The Royal Islamic Strategic Studies Center wrote, "King Abdullah introduced many reforms to society, combated religious fanaticism and corruption, improved educational system, assured women's rights, reformed the judicial system, and provided scholarships to over 130,000 male and female students to study abroad." See the Digital Journal article by Katerina Nikolas (CLICK HERE). Keep in mind that actual verification of his condition is almost impossible.
The irony is thick. It started with the Arab Spring, a popular uprising in response
to rising food prices. Few associated the
growing revolt that swept out the pro-West
Focus on another neighbor to
A comment from a reliable subscriber living in the
◄$$$ SOME SIGNALS GIVEN THAT MIGHT INDICATE THE DEMISE OF THE PETRO-DOLLAR
STANDARD. THE BRENT OIL PRICE IS FAVORED
BY USGOVT OVER
In an historic break that eludes almost all
For the first time, the Brent oil price is favored over
the West Texas oil price by the USGovt,
according to dictates by the
The WTI oil price has fallen 11% this year as the
Prices have diverged in the last couple years, and diverged to the point of
embarrassment. The excuse of bringing plentiful
Datoka Bakken supply to market seems absurd,
when Wall Street has controlled the price
with hammers fashioned of paper and corruption.
The WTI traded on the
The CME Group criticized the EIA decision. The group operates the NYMEX where
the WTexas crude oil contract is traded.
They admit the WTI oil price has been kept
down by a lack of access to waterborne markets,
a situation that will change with pipeline
reversals and additions and growing rail
capacity. An interesting spin, with indirect
reference to the Keystone Pipeline, which
President Obama dutifully halted in a genuflection
to his Big Oil and Wall Street masters.
The shutdown of the pipeline has kept
the plentiful Dakota oil and even the Athabasca
Meanwhile, out of
As the sun sets on the Petro-Dollar, the case of
By year 2010,
The Chinese are flush with cash unlike their competitors, the key to making
big strides in capital outlays. Michael
Cole, a former officer with
The global mantle of leadership is available for the next strong contender nation.
## EURASIA TRADE ZONE ADVENT
◄$$$ THE GIANT ASIAN TRADE TRADE ZONE IS FORMING. IT INCLUDES
Spengler posted a superb article on Asia Times, a leading journal on matters
pertaining primarily to
President Obama attended the summit to sell a US-based Trans-Pacific Partnership,
designed to exclude
The Asian nations increasing see the
Put these matters in context. The exports from Asian countries have risen over
20% from their peak before the 2008 economic
The USGovt leadership watches idly as the industrial base erodes. With the sale
of the Westinghouse nuclear power business
to Toshiba, and the Toshiba joint ventures
Without innovation and investment, the
In summary the
◄$$$ PUTIN HAS BEGUN TO PUSH THE EURASIAN CONCEPT. HE VISITS
Russian President Vladimir Putin is expected to attend the EU-Russia summit
The EU-Russian relation basis is currently governed by a 1997 Partnership &
Cooperation Agreement, which is ovedue for
replacement after 10 years. The negotiations
on a new basic treaty have stalled, due
to numerous disruptive agents such as the
sovereign bond crisis in Europe and focus
The Putin plan for
The lack of a reliable court system in the old Soviet
Bloc also hampers progress. The proponent from the Russian camp claimed that the
customs union was still being modeled after
the EU system, but with some advantages
like the lack of Parliamentary scrutiny.
The EU leadership would prefer another customs
union in its regional shadows if it contributed
to the liberalization of economic relations.
Tariff protection in
Thanks to the following for charts StockCharts, Financial Times, UK Independent, Wall Street Journal, Zero Hedge, Business Insider, Calculated Risk, Shadow Govt Statistics, Market Watch.